What is ESG and why is it important?

ESG

New rules on non-financial reporting come into force from the beginning of 2024. The new legislation only affects large companies, but SMEs will be affected through their supply chains, as large companies will need information from their suppliers to compile their non-financial report.  

ESG stands for Environment, Social and Governance. These three pillars are taken into account when assessing and managing sustainability and social responsibility. The company's impact on the environment, working conditions and overall company performance is assessed.  

 Important topics for reporting: 

Environment  

  • Climate change 
  • Pollution  
  • Biodiversity and ecosystem protection 
  • Resource use 
  • Circular economy  

Social  

  • Main workforce 
  • Supply chain workers  
  • Community Impact 
  • Consumers and end users  

Governance  

  • Ethics of conduct 

For companies that wish to manage their ESG assets responsibly and sustainably and integrate these aspects into the company's day-to-day operations and corporate culture, ISO (e.g. ISO 14 001 and ISO 26 000) is a suitable tool.  

We are happy to provide expert assistance in establishing an effective management and data collection system for ESG reporting, in successfully compiling reporting and in preparing for an ESG audit. All of this will be based on ISO best practices and our extensive experience. 

You can check whether non-financial reporting applies to you by using the online tool available at https://esgchecklist.cz/checklist.html 

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